Questions from Advanced Accounting

Q: Assume the same information as in Exercise 2-5 except

Assume the same information as in Exercise 2-5 except that instead of paying a cash earnout, Pritano Company agreed to issue 10,000 additional shares of its $10 par value common stock to the stockhold...

Q: Price Company issued 8,000 shares of its $20 par

Price Company issued 8,000 shares of its $20 par value common stock for the net assets of Sims Company in a business combination under which Sims Company will be merged into Price Company. On the date...

Q: Effective December 31, 2013, Zintel Corporation proposes to issue

Effective December 31, 2013, Zintel Corporation proposes to issue additional shares of its common stock in exchange for all the assets and liabilities of Smith Corporation and Platz Corporation, after...

Q: Company S has no long-term marketable securities. Assume the

Company S has no long-term marketable securities. Assume the following scenarios: Case A Assume that P Company paid $130,000 cash for 100% of the net assets of S Company. Case B Assume that P Compan...

Q: On January 1, 2013, Porsche Company acquired the net assets

On January 1, 2013, Porsche Company acquired the net assets of Saab Company for $450,000 cash. The fair value of Saab’s identifiable net assets was $375,000 on this date. Porsche Com...

Q: The following balance sheets were reported on January 1, 2014,

The following balance sheets were reported on January 1, 2014, for Peach Company and Stream Company: Required: Appraisals reveal that the inventory has a fair value of $120,000, and the equipment ha...

Q: Patel Company issued 100,000 shares of $1 par

Patel Company issued 100,000 shares of $1 par value common stock (market value of $6/share) for the net assets of Seely Company on January 1, 2014, in a statutory merger. Seely Company had the followi...

Q: Prepare in general journal form the workpaper entries to eliminate Prancer Company’s

Prepare in general journal form the workpaper entries to eliminate Prancer Company’s investment in Saltez Company in the preparation of a consolidated balance sheet at the date of ac...

Q: Patel Company issued 95,000 shares of $1 par value

Patel Company issued 95,000 shares of $1 par value common stock (market value of $6/share) for 95% of the common stock of Seely Company on January 1, 2014. Seely Company had the following assets, liab...

Q: December 31, 2014, trial balances for Pledge Company and its

December 31, 2014, trial balances for Pledge Company and its subsidiary Stom Company follow: Pledge Company purchased 72,000 shares of Stom Company’s common stock on January 1, 201...